F&N: Trading in a Triangle

F&N is current trading in a Triangle. Upside capped at the Triangle Resistance and 200D MA resistance between $5.90 and $5.95. Base on current chart, downside risk is higher than upside potential as the 200D is trending down in additional to current poor world economy and debt crisis.  Breaking down from this Triangle will send F&N to the price target of about $4.75.

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This Post Has 12 Comments

  1. Mr. Y October 5, 2011

    F&N looks like it is going to break support soon!

  2. Marubozu October 5, 2011

    Currently just at the support. Let’s see whether the stock price can rebound from this level.

  3. Mr. Y October 14, 2011

    Hi M, what do you think of F&N today with its closing can it breakout from triangle?

  4. Marubozu October 14, 2011

    Hi Mr Y,
    Yes. Looks like breaking out but not sure whether this breakout can be successful base on current macro-economy.
    I have been watching this F&N price movement for the whole day but there was last minute buying to push the price up. Actually I am waiting for F&N to turn down when hitting the triangle resistance.

    What is your take?

    Marubozu

  5. Mr. Y October 14, 2011

    Hi M,

    I definitely hope the price will fall nxt wk, i took my short position at $5.90 today only to find out the price surge to $5.99 just before the market close

  6. Mr. Y October 14, 2011

    But based on the chart I drew with 23.6% Fibonacci retracement at $5.265, the stock hit the $6.00 resistance at 61.8% Fibonacci retracement.

  8. Marubozu October 16, 2011

    Let the chart pattern decides because it may be a false breakout. If the stock price cannot break the $6.00 resistance, it has high possibility to turn down. Furthermore, all major indices are due for a correction after running up for so many days.

  9. Marubozu October 17, 2011

    Mr.Y:
    Congrats! Bearish Harami at the resistance + US in red.
    More or less confirmed turning down.

    Cheers!
    M

  10. Mr. Y October 26, 2011

    time to short F&N again! its RSI is in the overbought region and it just form a new double top?

  11. Marubozu October 27, 2011

    It looks like a breakout.
    Cannot use RSI in overbought region to make short decision.

  12. Marubozu October 27, 2011

    Mr.Y,
    F&N breakout from the Triangle and 200D MA resistance with a spike in trading volume. Need to change strategy to LONG if F&N pulls back to test $6.00 resistance turned support successfully.

    M

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